SELF ACADEMY: KEYLESS WALLETS
For years, private keys have been the foundation of blockchain security, but also one of its biggest flaws. The traditional “not your keys, not your crypto” mantra has placed an enormous burden on users to securely manage cryptographic keys, despite overwhelming evidence that most cannot.
In 2024, the cryptocurrency landscape witnessed a surge in security breaches, with over $2.2 billion stolen through hacks—a 21% increase from the previous year. Notably, 43.8% of these thefts were attributed to compromised private keys, highlighting the vulnerabilities inherent in traditional key-based systems. With growing adoption and rising user expectations, this status quo is no longer sustainable.
Amidst these challenges, Self Chain is introducing keyless wallets that eliminate the need for traditional private keys. By leveraging Multi-Party Computation (MPC) and Threshold Signature Schemes (TSS), Self Chain offers a secure, user-friendly alternative that addresses the pitfalls of conventional wallet systems.
This blog will break down the concept of keyless wallets and their impact on asset security in web3.
Why Private Keys Are a Problem
In the current Web3 landscape, private key management is arguably the #1 friction point:
- 20% of all Bitcoin is considered lost due to key mismanagement (Chainalysis 2020 report)
- A 2025 report by Security.org found that 36% of current crypto owners fear losing access to their wallets.
The lesson is clear: Seed phrases don’t scale.
That’s why Self Chain has taken a radically different approach. One that removes private keys, yet maintains full user control, ownership, and decentralization.
What Are Keyless Wallets?
Keyless wallets are a new generation of crypto wallets that eliminate the need for users to manage or even possess private keys. Instead of relying on a single cryptographic secret, they use advanced cryptography like Multi-Party Computation (MPC) and Threshold Signature Schemes (TSS) to securely authorize transactions without ever exposing a full private key.
Keyless wallets aim to:
- Eliminate seed phrases
- Improve UX for onboarding and recovery
- Retain (or improve upon) decentralization and security
Now, how does it work?
How It Works: The Cryptographic Shift
Traditional wallets generate and store a private key locally. This private key is used to sign transactions and must be protected at all costs.
Here’s how Keyless wallets flip this model:
MPC-TSS Architecture
- The private key is never created as a whole.
- It is mathematically divided into “key shares”, distributed across multiple nodes or devices.
- To sign a transaction, the nodes collaborate and use threshold cryptography to generate a valid signature without reconstructing the full key at any point.
- Key shares are frequently rotated, reducing risk over time.
Benefits
- No single point of failure
- No seed phrases to remember or lose
- No local storage vulnerabilities
- Enables shared, multi-device authorization flows
MPC-TSS has already been battle-tested at the institutional level. Platforms like Fireblocks and Coinbase Prime use MPC to secure billions of dollars in assets, proving the model’s security and scalability.
Self Chain’s Keyless Wallet: A Purpose-Built Architecture
Self Chain has engineered its wallet infrastructure around MPC-TSS, Account Abstraction, and intent-based execution, delivering a Web3 access layer that’s secure by design, effortlessly usable, and ready for AI-powered automation.
Here’s how Self Chain raises the bar:
1. MPC-TSS Built Into the Chain
Self Chain uses MPC-TSS/AA to power keyless wallets. No full private key is ever created. Instead, the private key is mathematically split into key shares, which are distributed across multiple devices on the MPC node network. These key shares are split into: Personal Share, Recovery Share, and Remote Share, which are stored on the Self Chain network.
When a transaction needs to be signed, a subset of these nodes collaborates to generate a valid signature using threshold cryptography, and is verified on Self Chain without ever reconstructing the full key.
2. Account Abstraction for Programmability
Self Chain leverages Account Abstraction (AA) to enable programmable wallet logic:
- Gasless Transactions: Sponsors can pay gas on behalf of users.
- Custom Auth Logic: Biometrics, social recovery, or 2FA can replace traditional keys.
This makes wallets not just easier to use, but programmable, a critical metric for easy usability.
3. Intent-Based UX
The final pillar of Self Chain’s design is its intent-centric execution model. Instead of signing raw transactions, users express what they want to do, like:
“Swap 100 USDC for ETH at the best rate.”
Self Chain’s infrastructure handles the optimal execution path with signature authorization happening securely via the keyless wallet.
This makes keyless wallets not just safer, but more user-centric, especially when combined with on-chain AI agents that execute user intents autonomously.
Use Cases Enabled by Self Chain Keyless Wallets
- DeFi Access: Users can interact with protocols without ever seeing a seed phrase.
- Gaming & NFTs: One-click asset movement, no wallet popups or gas confusion.
- AI Agents: Agents can initiate transactions securely and autonomously.
- Onboarding for Normies: Web2-like flows using email, biometrics, or social logins.
Security and User Experience: A New Balance
Keyless wallets offer a balance that was previously impossible in Web3: self-sovereign control without self-managed risk.
This infrastructure also unlocks agent-level automation. AI agents on Self Chain can use keyless wallets to sign transactions, interact with protocols, and rebalance assets all without human approval loops.
The Broader Impact: Real Web3 Adoption
Keyless wallets solve the “access layer” problem in crypto. They enable:
- Lower onboarding friction
- Stronger security defaults
- Safer delegation to agents and apps
Self Chain’s design doesn’t just replace wallets, it redefines them.
By combining secure MPC-TSS signing, programmable account abstraction, and AI-integrated intent execution, Self Chain has built a keyless wallet infrastructure that’s ready for real-world use and ready for the future of Web3.
Conclusion
Web3 wallets are undergoing a fundamental transformation from key management to goal management. Whether it’s through MPC, account abstraction, or biometrics, keyless access is quickly becoming the industry standard for usability, security, and automation.
As AI agents, multi-chain apps, and embedded crypto UX take center stage, keyless wallets will serve as the unseen infrastructure layer that makes it all work.
Self Chain is one of the few platforms building this foundation natively, offering not just a better wallet but a smarter, safer access layer for the future of decentralized access. By embedding MPC-TSS, account abstraction, and intent-based execution into its core, Self Chain is building a foundation that is developer-friendly and user-first.
This is more than a wallet evolution. It’s a new paradigm for how people interact with the decentralized web.
About Self Chain
Self Chain is the AI-powered intent layer for Web3, and a Modular L1 simplifying blockchain interactions. By combining keyless wallets (MPC-TSS/AA), intent-driven automation, and seamless multi-chain access, Self Chain eliminates complexity, making Web3 more intuitive, autonomous, and secure.
With Keyless Wallets and AI-powered intent execution, users can seamlessly onboard, manage assets, and interact with dApps without handling private keys or complex transactions. Self Chain’s AgentFi Infra enables autonomous on-chain AI agents to execute transactions, optimize DeFi strategies, and interact across ecosystems, while PayFi powers seamless, real-time blockchain payment systems, aligning with the evolving demands of the emerging global economy. Developers benefit from tools like the Intent SDK, Keyless Wallet SDK, and Account Abstraction Plugins, enabling the next generation of AI-driven applications with enhanced security and efficiency.